*Test Your Understanding* 1. State whether the following mergers are horizontal, vertical, or conglomerate: SBC buys Pacific Bell _______________ 2....

*Test Your Understanding* 1. State whether the following mergers are horizontal, vertical, or conglomerate: 1. SBC buys Pacific Bell _______________ 2. SBC buys AT&T _______________ 3. Kmart buys Sears Roebuck _______________ 4. Proctor and Gamble buys Gillette ______________ 4. Disney buys ABC _______________ 5. General Electric buys NBC ______________ 6. Chevron buys Texaco ______________ 7. Ralston Purina, maker of dog and cat food, buys Jack in the Box ______________ 8. Met Life (insurance) buys Travelers Life and Annuity (insurance) ______________ 9. Verizon buys MCI ______________ 10. The owner of CBS (Viacom)buys MTV ______________ 2. An industry has 10 companies with the following share of sales: A 20% F 10% B 20% G 5% C 10% H 5% D 10% I 5% E 10% J 5% Under the Merger Guidelines, would companies A and B be allowed to merge? Why or why not? Under the Merger Guidelines, would companies I and J be allowed to merge? Why or why not?